Increased activity in the San Andreas Fault is causing more and more homeowners to second guess their home insurance coverage. The San Andreas Fault runs straight down California, spanning nearly 800 miles. Scientists have warned that areas in Southern California are due for a sizable earthquake, especially near the Los Angeles area.
Although almost everybody in southern California protects their property with standard home insurance policies (fire, hail, wind, etc.), few are protecting against the peril of earthquake.
In the past, Earthquake coverage was moderately priced but had extremely high deductibles (from 10-15% of the dwelling coverage). That means that a home which could be rebuilt for $250,000 would have a deductible in the neighborhood of $25,000- $37,500. To many, the thought of a deductible that high just didn’t warrant paying a premium for an earthquake insurance policy.
However, many carriers now include a 5% deductible option, which is much more appealing to the average consumer. Pair that with competitive premiums, and more people are adopting the concept of carrying earthquake insurance. And it could be just in time!
Consider looking into earthquake insurance to round out protection of your assets, and avoid having an earthquake disaster be your fault!